Nasdaq and Dow Rebound as Hopes Rise for US-China Trade Resolution

Nasdaq, Dow Snap Losing Streaks Amid US-China Trade Optimism

U.S. stock markets surged on Tuesday as investor sentiment improved amid signs of easing trade tensions between the U.S. and China. The Nasdaq Composite rose 2.7% to 16,300.4, and the Dow Jones Industrial Average climbed 2.7% to 39,187—both breaking a four-day losing streak. The S&P 500 advanced 2.5% to close at 5,287.8.

All 11 S&P 500 sectors finished in positive territory, with financials and consumer discretionary stocks leading the gains.

Investor optimism was buoyed by comments from U.S. Treasury Secretary Scott Bessent, who suggested that a resolution to the U.S.-China trade standoff may be near, according to a report from CNBC citing attendees of a JPMorgan-hosted investor summit. “No one thinks the current status quo is sustainable,” Bessent reportedly said.

Earlier in the month, President Trump announced a 90-day pause on reciprocal tariffs for non-retaliating countries. However, trade tensions between the U.S. and China have persisted, with both sides increasing tariffs on each other’s goods. In a social media post, Trump also said he had a “very good” call with Israeli Prime Minister Benjamin Netanyahu, discussing topics including trade.

Bond Market:
U.S. Treasury yields were mixed. The 2-year yield rose 5.5 basis points to 3.83%, while the 10-year yield fell 1 basis point to 4.40%.

Commodities:
Gold slipped 1% to $3,391 per ounce after briefly hitting an all-time high above $3,500. Silver dipped slightly by 0.1% to $32.80 per ounce. WTI crude oil rose 1.8% to $64.20 a barrel.

Earnings Highlights:

• 3M (MMM) shares surged 8.1%, leading the Dow, after posting strong Q1 results and reaffirming its full-year outlook despite tariff headwinds.

• Equifax (EFX) jumped nearly 14%, the best performer on the S&P 500, after a solid earnings beat.

• Northrop Grumman (NOC) fell 13%—the steepest S&P 500 decline—after cutting its full-year forecast due to B-21 bomber program losses.

• RTX (RTX) shares dropped 9.8%, following a warning of an $850 million pretax hit from tariffs.